Japan Branch Office
Advantages of Setting Up a Branch Office in Japan
As its name indicates, a Japan branch office is a branch of a foreign company in Japan.
The main advantage of setting up a branch office in Japan is simplicity:
- No articles of incorporation are needed (A simple affidavit based on foreign corporation is needed)
- No capital is needed
- No corporate secretary is needed (no need to hold annual shareholder meeting.
In case company decided to close a branch office, closing is much easier that closing a Joint Stock Company or Limited Liability Company LLC of G.K.
However company still has the accounting and tax filing obligations as any other type of companies in Japan:
– G.K (Japan LLC) or K.K. (Japan Stock Company)
Drawbacks of Setting Up a Branch Office in Japan
The Japan branch office is a branch of the parent company and is not considered as an independent legal entity.
Therefore, in case of tax audit, Japan tax authorities may require access to accounting information of parent company of the Japan Branch Office.
A Japan resident representative is necessary to create a Japan Branch Office.
JMC K.K. can provide Japan branch representative services and also registered address.
What is Needed to Create a Branch Office?
- Define the name of the branch in Japan
- Define the purpose of the company
- Affidavit
- Obtain a Japanese registered address (JMC can provide an registered address in Japan under certain conditions)
- Name a Japan resident as representative of the branch office
- JMC can provide a questionnaire that outlines the main issues to be considered on request to corporate clients
Main Obligations of a Branch Office
- Japanese branch office needs to be registered with the Japan Legal Affairs Bureau
- Japanese branch office needs to be register with relevant tax office
- Statutory accounting: the Japan company has to maintain a General Ledger in Japanese Yen
JMC accounting services can help you fulfill this obligation
Bank Account
JMC can help the branch to establish a bank account with a local Japanese bank. We can also set up a dedicated JMC bank account for use of the representative office. JMC provide a full range of cash management services and payment services.
Disclaimer: This information is provided for illustration purposes only. JMC cannot be held liable for any decisions made based on this information. For any legal advice in Japan, a Japanese Legal Professional should be consulted.